Alvean sees sugar deficit deepening

Alvean, the world’s largest sugar trading company, owned by Brazilian company Copersucar, sees an increase in sugar shortages in the 2021/22 international harvest which starts in October. The company predicts that the global supply will be 5 million to 6 million tons below demand, in a scenario that is mainly due to the adverse climate that should continue to affect production in Brazil and other countries.

If confirmed, this will be the third consecutive deficit season. Alvean’s projection is even higher than that of other agents, such as the International Sugar Organization (ISO), which last week released an estimate of a deficit of 3.8 million tons.

See below a history of Brazilian sugar exports from 2018 on. Data are from DataLiner:

Brazilian Sugar Exports (HS 1701) | Jan 2018 to July 2021 | WTMT

The reduced supply also marks the current international harvest, which ends at the end of this month, and has driven the increase in prices on the New York Stock Exchange; prices have already risen almost 50% in 12 months. For the season that ends now, Alvean sees a deficit of 4 million tons, which comes after the deficit of 3 million tons in the previous harvest. Thus, in three seasons, consumption should exceed global production by 12 million tons.

Source: Valor Econômico

To read the full original article, visit the link: 

https://valor.globo.com/agronegocios/noticia/2021/09/03/alvean-ve-deficit-de-acucar-em-elevacao.ghtml

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